Shareholders’ equity In 2008, the Board of Directors’ Meeting, Session 1/2008 and the 2008 Shareholders’ Meeting on April 22, 2008, respectively, resolved to pay dividends to the shareholders for the 2007 operation, at the rate of 0.03 Baht, totaling 30.15 MB. Payment of the dividends was scheduled for May 22, 2008. The Company and the subsidiaries had an increase of profit by 331.59 MB. In 2009, the Board of Directors’ Meeting, Session 1/2009 and the 2009 shareholders’ meeting, on April 22, 2009 resolved to not pay dividends. In 2010, the Board of Directors’ Meeting, Session 1/2010 and the 2010 Shareholders’ Meeting on April 23, 2010, resolved to pay dividends and stock dividends at the rate of 0.15 Baht per share and 10 existing shares: 1 dividend stock, or a total value of 0.25 Baht per share. In 2011, the Board of Directors Meeting No. 1/2554 and the Annual General Meeting of Shareholders of the Company for the fiscal year 2011 on April 26, 2011 has approved the payment of dividends. In cash and stock dividends. By paying cash dividends 0.12 per share and stock dividend paid in the proportion of 10 existing shares: 1 dividend of 0.22 baht per share is included. Appropriateness of the capital structure At the end of 2009, 2010 and 2011, the Company and its subsidiaries had shareholders’ equity ratio was increased to 0.65 times, 0.93 times and 1.04 times respectively, the total debt fell steadily. As a result of the transfer has completed condominium project the company has developed some years ago, which resulted in 2009 and the year 2010. Debt to equity reduction has implications for the 2011 debt to equity increased because of non-current liabilities increased to 1,390.57 million baht worth of the ratio to equity shareholders increased. A debt to equity ratio considered appropriate for companies in the industry should not exceed 1.00 times. The Company’s ratio is still in line with the industry value. Additional liabilities may be secured for project expansion. The Company aims not to let the ratio exceed 1.2 times so as to prevent risks on the parts of the Company and the investors. 12.2.3 Factors and influences which may potentially affect the operation or the financial position in the future Changing consumers’ housing demands Several factors, including the political situation, the economic slowdown, oil prices, increasing interest rates, low consumer confidence, and mega flood, may affect housing demands. If that happens, the Company may not be able to sell its goods, or sales may be slower, which will result in high inventory costs and will affect its liquidity and profitability. Nevertheless, the Company’s commitment to product and service excellence which underlies the slogan “The Art of Family Living” has brought about acceptance and trust from consumers for the brand “Prinsiri”. To minimize such possible impact, the Company conducts research and studies consumers’ behavior before developing projects to ensure that its products most directly respond to consumes’ requirements. Construction is planned to be in line with sales estimates and is carried out in phases. Hence, if products cannot be sold or if sales become slower, the Company can slow down or even halt the construction. The Company also launches marketing promotion campaigns on a continuous basis in order to create brand awareness, to induce demands for the products and to remind consumers of the products. Such campaigns also build confidence in the products and strengthen the Company’s image. 12.3 Auditor’s remuneration The Company and the subsidiaries paid 1.71 MB, 1.85 MB and 2.03 MB, as remunerations to the auditors in the 2009, 2010 and 2011 accounting periods, respectively. No other remunerations than the auditing fee were paid by the Company and the subsidiaries. Back
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ANNUAL REPORT 2011 117